weak dollar keeps hk cheaper for expats

Hong Kong fell from sixth to ninth place in Asia, and by 26 places in the global rankings.

“We are typically seeing higher price levels across the region compared with 2010 and Hong Kong is no exception," said Lee Quane, regional director, Asia for ECA International.

"However, when we look at Hong Kong in a regional context, the weak dollar means that the city is now cheaper than a number of other locations including Singapore, Beijing and Shanghai, where there has not only been significant price inflation but also currencies have strengthened.”

This year the items in ECA’s cost of living basket of consumer goods and services have gone up by more than 7%. Living costs for expats are affected by inflation, availability of goods and exchange rates, all of which can have a significant impact on assignee remuneration packages, the company said.

Globally, Tokyo is the most expensive location for the second year running, followed by Oslo and then Geneva. Despite the value of the Swiss franc falling against major currencies in the aftermath of the Swiss National Bank’s move to set a minimum exchange rate against the euro, Swiss locations remain in the top ten most expensive.

Singapore has risen rapidly up the global rankings to 31st place in recent years, and has firmly secured its position among Asia’s top ten, moving from eighth to sixth position over the past year.

Australian cities continue their rise up the ranking. Sydney has gained another 10 places since last year and is now ranked 15th worldwide. This is in stark contrast to three years ago, when it ranked just 157th.

Overall, locations across the Middle East have fallen in the ranking. Israeli locations are by far the most expensive for expats in the region. Tel Aviv is in 32nd place globally, down 14 places from a year ago.

In contrast, Dubai is ranked 180th, while Jeddah, in 232nd position, is the least costly location surveyed in the region.

ECA International, a management solutions company, calculates its cost of living indices using surveys carried out annually in March and September.